Creating an enabling environment for improved energy efficiency in street lighting India has one of the largest electricity systems in the world with a generation capacity of 205 GW. Thermal energy driven systems constitute 67 per cent of the installed capacity followed by other sources (Figure 1). Problems in land acquisition, obtaining financing for new power projects, low recoveries by the distribution companies, unviable tariffs, severe shortages of high grade coal as well as the environmental impact both in extraction and burning coal create formidable challenges in meeting our energy needs and in providing adequate electricity of desired quality in a sustainable manner. Recent CEA statistics show that the country had an energy shortage of 8.5 per cent and a peak shortage of 11.10 per cent during April'11-March'12 persistent electricity shortages have been identified as a key bottleneck for sustaining India's growth rate as all consumers across the country face scheduled and unscheduled load shedding and even blackouts. Indian Grid Failure, July, 2012 The July'12 blackout in Northern India was the largest power outage in history, occurring as two separate events on 30 and 31 July 2012. The outage affected over 620 million people, about 9 per cent of the world population or half of India's population, spread across states in North, East, and Northeast India. An estimated 48 GW of consumer load was affected in this black out. The ministry of power constituted an enquiry committee, to analyse the causes of these disturbances and to suggest measures to avoid recurrence of such disturbances in the future. Multiple outages of transmission lines, overdrawal by utilities, inadequate coordination between State and Regional Load Dispatch Centres and over loading on a major interregional transmission line have been identified as some of the major factors contributing to this massive blackout. Supply side measures like generation, transmission and distribution capacity augmentation alone cannot be expected to overcome these challenges as they are not only too expensive, but they also do not address the inefficiencies in consumption that led to the collapse and hence, energy efficiency and conservation should be extensively promoted to complement the planned capacity enhancements. Need for Energy Efficiency and Conservation A recent study by the National Productivity Council (NPC) estimates that the energy use in the agricultural sector has significant potential for improvement with almost 30 per cent savings resulting from energy efficient pumping operations. Other sectors like municipalities, domestic households, and industries show 20 per cent potential. The commercial building segment has about 7 per cent potential for energy savings. Several studies have conclusively proved that investments in energy efficiency measures are often more cost effective and socially beneficial than increasing the power supply or transmission capacity. One tool that has proved effective in many countries for delivering energy efficiency is demand-side management, or DSM, which is considered as a key strategy capable of offering unique opportunities to implement energy efficiency and bridge the demand supply gap in the country. Demand Side Management (DSM) Methodology and Framework DSM is a mechanism in which a utility or other state-designated entity promotes energy efficiency through targeted educational or incentive programs whose effects are measured quantitatively. DSM is the selection, planning, and implementation of measures intended to have an influence on the demand or customer-side of the electric meter. DSM programs can reduce energy costs for utilities and customers and in the long term, reduce the requirement for further capacity augmentation and strengthening of transmission and distribution systems. Some of the commonly adopted techniques for the design and implementation of DSM measures are summarised in the following sections.
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